The affordable housing problem has become a crisis, with the demand for affordable units far outstripping the supply. As the number of renters requiring affordable housing continues to grow, thousands of units are lost each year to disrepair while market rate investment crowds out affordable projects. But there are reasons to be optimistic, as public and private agencies work together alongside their communities and municipal leaders to confront the challenge head-on, rehabilitating and transforming neighborhoods in the process.
Are you an affordable housing expert? Test your knowledge below.
1
Extremely low-income renter households, defined as those with incomes under 30% of the area median income, make up what percentage of renters in the U.S.?
YOU'RE CORRECT!
Seventy-one percent of these households are severely cost-burdened, spending more than half of their incomes on rent and utilities. According to the Department of Housing and Urban Development, these families have difficulty affording necessities such as food, clothing, transportation and medical care.
YOU'RE WRONG!
Seventy-one percent of these households are severely cost-burdened, spending more than half of their incomes on rent and utilities. According to the Department of Housing and Urban Development, these families have difficulty affording necessities such as food, clothing, transportation and medical care.
2
The number of renter households in the U.S. has increased on average by _______ annually.
YOU'RE CORRECT!
Today, there are nearly 44 million renter-occupied households in the U.S., according to KeyBank Senior Vice President Al Beaumariage, who manages KeyBank’s affordable housing programs. At a growth rate of 800,000 renters/year, rising demand has the potential to worsen the affordable housing crisis.
YOU'RE WRONG!
Today, there are nearly 44 million renter-occupied households in the U.S., according to KeyBank Senior Vice President Al Beaumariage, who manages KeyBank’s affordable housing programs. At a growth rate of 800,000 renters/year, rising demand has the potential to worsen the affordable housing crisis.
3
The U.S. has a shortage of _______ affordable and available rental homes for extremely low-income renter households.
YOU'RE CORRECT!
According to the National Low Income Housing Coalition's March 2017 report, the U.S. has a shortage of 7.4 million affordable housing units.
“Largely pushed aside by the bigger paydays of the luxury market, bureaucratic oversight and dwindling funds for construction, affordable housing is multifamily’s problem child,” Beaumariage said. "If a local community and citizens are not behind you, it doesn’t matter that your agencies and developers are working together, they will kill the project out of fear."
YOU'RE WRONG!
According to the National Low Income Housing Coalition's March 2017 report, the U.S. has a shortage of 7.4 million affordable housing units.
“Largely pushed aside by the bigger paydays of the luxury market, bureaucratic oversight and dwindling funds for construction, affordable housing is multifamily’s problem child,” Beaumariage said. "If a local community and citizens are not behind you, it doesn’t matter that your agencies and developers are working together, they will kill the project out of fear."
4
There are _______ affordable and available rental homes for every 100 extremely low-income renter households.
YOU'RE CORRECT!
The good news is that this represents a 25% increase from 2013. Four years ago, the Urban Institute found that there were only 28 adequate and affordable housing options per 100 ELI renter households. The lack of housing availability is potentially compounding other issues these ELI individuals face, especially in subpopulations like those escaping domestic violence, individuals transitioning from homelessness and the elderly, KeyBank Senior Banker Irena Edwards said.
YOU'RE WRONG!
The good news is that this represents a 25% increase from 2013. Four years ago, the Urban Institute found that there were only 28 adequate and affordable housing options per 100 ELI renter households. The lack of housing availability is potentially compounding other issues these ELI individuals face, especially in subpopulations like those escaping domestic violence, individuals transitioning from homelessness and the elderly, KeyBank Senior Banker Irena Edwards said.
5
The U.S. loses _______ units of low-income housing each year to disrepair.
YOU'RE CORRECT!
According to HUD, 10,000 units of public housing are lost each year to disrepair. In 2012, Congress passed legislation that created the Rental Assistance Demonstration program. It is designed to rehabilitate the 1.2 million public housing units needing $26B in capital improvements.
YOU'RE WRONG!
According to HUD, 10,000 units of public housing are lost each year to disrepair. In 2012, Congress passed legislation that created the Rental Assistance Demonstration program. It is designed to rehabilitate the 1.2 million public housing units needing $26B in capital improvements.
6
What percentage of renters earn less than $20K/year?
YOU'RE CORRECT!
Almost one-third of renters earn roughly one-third of the $59K U.S. median income. Since 2001, renters’ real median incomes have fallen 9%, exacerbating the affordable housing problem, according to KeyBank National Manager of Community Development Lending and Investment Robert Likes.
YOU'RE WRONG!
Almost one-third of renters earn roughly one-third of the $59K U.S. median income. Since 2001, renters’ real median incomes have fallen 9%, exacerbating the affordable housing problem, according to KeyBank National Manager of Community Development Lending and Investment Robert Likes.
7
What can affordable housing projects do for the local community?
Promote educational attainment
Create employment opportunities
Improve urban blight and foster development
YOU'RE CORRECT!
The benefits of affordable housing can reverberate throughout a community. In Baltimore, KeyBank provided $56.1M in FHA-insured financing for the construction of Center/West Apartments. The large-scale redevelopment project will revitalize the Poppleton neighborhood and spur local economic development. In the first phase, KeyBank executed the fastest firm commitment to finance new construction in the history of HUD.
YOU'RE WRONG!
The benefits of affordable housing can reverberate throughout a community. In Baltimore KeyBank provided $56.1M in FHA-insured financing for the construction of Center/West Apartments. The large-scale redevelopment project will revitalize the Poppleton neighborhood and spur local economic development. In the first phase, KeyBank executed the fastest firm commitment to finance new construction in the history of HUD.
8
Which of the following groups’ involvement is needed to help solve the affordable housing crisis?
Federal agencies and programs
Local neighborhoods and community citizens
YOU'RE CORRECT!
No single entity or group is responsible for the problem, but a multipronged approach is required to improve the predicament. Politicians, banks, developers and federal agencies’ combined efforts will be more effective than any one’s isolated contribution. KeyBank is the fifth-most-active affordable housing lender in the country, with over $1.4B in annual production in 2016, expected to grow to $1.8B by the end of 2017.
YOU'RE WRONG!
No single entity or group is responsible for the problem, but a multipronged approach is required to improve the predicament. Politicians, banks, developers and federal agencies’ combined efforts will be more effective than any one’s isolated contribution. KeyBank is the fifth-most-active affordable housing lender in the country, with over $1.4B in annual production in 2016, expected to grow to $1.8B by the end of 2017.
